The Employee Retirement Income Security Act of 1974
ERISA is the acronym for the Employee Retirement Income Security Act of 1974. ERISA is a federal law that sets the standards for most voluntary established pension plans in private industry to provide protection for individuals participating in these plans. ERISA requires plans to:
- Provide participants with plan information including important information about plan features and funding.
- Set minimum standards for participation, vesting, benefit accrual and funding.
- Provide fiduciary responsibilities for those who manage and control plan assets.
- Provide participants the right to sue for benefits and breaches of fiduciary duty.
- Requires plans to establish a grievance and appeals process for participants to get benefits from their plans.
401(k) defined contribution plans are subject to ERISA.